IGCSE Business Studies (9–1) 0986 · Topic 4

Operations management: past paper questions

63 real questionsasked in 10 of the last 10 exam series2019–2026usually: Explain, Calculate, Justify, Consider, Define

Real questions on operations management

The newest 20 of 63 written questions. Open one to see it on the real paper.

0986/11 · May/June 2026 · Q2d[6]
Explain two ways OBZ could maintain quality production.
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0986/11 · May/June 2026 · Q2e[6]
Do you think the advantages to a business of using job production are greater than the disadvantages? Justify your answer.
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0986/21 · May/June 2026 · Q3b[12]
(b) Using Appendix 3 and other information, consider the two product ranges Ashanti could choose to sell. Which product range should Ashanti choose? Justify your answer using break-even calculations. * product range A * product range B cole 1a\0 ..........
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0986/11 · October/November 2025 · Q1d[6]
Explain two possible effects of WMH introducing new technology. Effect 1: Explanation: Effect 2: Explanation:
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0986/11 · October/November 2025 · Q1e[6]
Explain two factors a manufacturing business should consider when deciding on a suitable location for a factory. Which factor is likely to be the most important? Justify your answer.
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0986/11 · October/November 2025 · Q3a[2]
Identify X and Y. X: Y:
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0986/11 · October/November 2025 · Q3b[2]
Define ‘margin of safety’.
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0986/21 · October/November 2025 · Q1b[12]
Consider the following three economies of scale for LB. Which economy of scale is likely to have benefited LB the most? Justify your answer. • Financial • Purchasing • Managerial Financial: Purchasing: Managerial: Conclusion:
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0986/11 · May/June 2025 · Q2c[4]
Outline two reasons why maintaining quality is important for NSL. Reason 1: Reason 2:
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0986/11 · May/June 2025 · Q2d[6]
Explain two benefits to NSL of using lean production. Benefit 1: Explanation: Benefit 2: Explanation:
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0986/11 · May/June 2025 · Q3b[2]
Calculate the value of X and Y. X: Y:
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0986/11 · May/June 2025 · Q4d[6]
Explain two diseconomies of scale which might affect PKN as it grows. Diseconomy 1: Explanation: Diseconomy 2: Explanation:
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0986/12 · May/June 2025 · Q1a[2]
Define ‘batch production’.
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0986/12 · May/June 2025 · Q1c[4]
Outline one advantage and one disadvantage to NFC of using quality assurance. Advantage: Disadvantage:
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0986/12 · May/June 2025 · Q4a[2]
Define ‘average cost’.
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0986/12 · May/June 2025 · Q4b[2]
Calculate total variable cost per month. Show your working. Working: Final
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0986/21 · May/June 2025 · Q2b[12]
Consider the following three factors that may influence the location of PF’s new factory. Which factor is likely to be the most important when deciding on the location? Justify your answer. • • • Availability of raw materials Transport links Government influence Availability of raw materials: Transport links: Governmen...
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0986/22 · May/June 2025 · Q2b[12]
Consider the following two ways TSE could use to increase efficiency. Which way should TSE use? Justify your answer. • • Improving labour skills Increasing automation and technology Improving labour skills: Increasing automation and technology: Recommendation:
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0986/22 · May/June 2025 · Q3b[12]
Consider the following two ways TSE could purchase the raw materials for its factories. Which way should TSE use? Justify your answer. • • Head office in country P continues to purchase the raw materials for all TSE factories TSE’s factory managers in each country purchase raw materials locally Head office in country P...
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0986/11 · October/November 2024 · Q1a[2]
Identify two benefits to a business of using flow production. Benefit 2: Benefit 1:
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What examiners said

The majority of candidates were able to provide two correct reasons. However, candidates often repeated the same point of application, food or related words which could only be credited once.
— Examiner report, May/June 2025, 0986/11 Q2(c) (Cambridge)

This topic was not well understood by candidates. A small number of candidates did not attempt the question. Common problems were that candidates confused lean production with flow production or identified features rather than advantages of lean production. The strongest answers often explained the benefit of reduced waste or lower inventory being held for this food producer reliant on imports. On...
— Examiner report, May/June 2025, 0986/11 Q2(d) (Cambridge)

Many correct answers lost a mark on this question by not recognising that the figure for Y was negative. Some candidates did not know how to complete the two calculations.
— Examiner report, May/June 2025, 0986/11 Q3(b) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

Download 0986 papers

In the syllabus

1 0450.4.1.1.01 — Difference between production and productivity

Difference between production and productivity
Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills
Why businesses hold inventories
The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production

2 0450.4.1.1.02 — Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills

Benefits of increasing efficiency and how to increase it, e.g. increasing productivity by automation and technology, improved labour skills

3 0450.4.1.1.03 — Why businesses hold inventories

Why businesses hold inventories

4 0450.4.1.1.04 — The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production

The concept of lean production: how to achieve it, e.g. just-in-time inventory control and Kaizen; benefits of lean production

5 The main methods of production: • Features, benefits and limitations of job, batch

Recommend and justify an appropriate production method for a given situation

6 Identify and classify costs: • Classifying costs using examples, e.g. fixed,

Use cost data to help make simple cost-based decisions, e.g. to stop production or continue

7 Economies and diseconomies of scale: • The concept of economies of scale with

The concept of diseconomies of scale with examples, e.g. poor communication, lack of commitment from employees, weak coordination

8 0450.4.2.3.01 — Construct, complete or amend a simple break-even chart

Construct, complete or amend a simple break-even chart
Interpret a given chart and use it to analyse a situation
Calculate break-even output from given data
Define, calculate and interpret the margin of safety
Use break-even analysis to help make simple decisions, e.g. impact of higher price
Understand the limitations of break-even analysis

9 0450.4.2.3.02 — Interpret a given chart and use it to analyse a situation

Interpret a given chart and use it to analyse a situation

10 0450.4.2.3.03 — Calculate break-even output from given data

Calculate break-even output from given data

11 0450.4.2.3.04 — Define, calculate and interpret the margin of safety

Define, calculate and interpret the margin of safety

12 0450.4.2.3.05 — Use break-even analysis to help make simple decisions, e.g. impact of higher price

Use break-even analysis to help make simple decisions, e.g. impact of higher price

13 0450.4.2.3.06 — Understand the limitations of break-even analysis

Understand the limitations of break-even analysis

14 0450.4.3.1.01 — The concept of quality control and how businesses implement quality control

The concept of quality control and how businesses implement quality control
The concept of quality assurance and how this can be implemented

15 0450.4.3.1.02 — The concept of quality assurance and how this can be implemented

The concept of quality assurance and how this can be implemented

16 0450.4.4.1.01 — Factors that a business could consider when deciding which country to locate operations in

Factors that a business could consider when deciding which country to locate operations in
The role of legal controls on location decisions
Recommend and justify an appropriate location for a business in given circumstances

17 0450.4.4.1.02 — The role of legal controls on location decisions

The role of legal controls on location decisions

18 0450.4.4.1.03 — Recommend and justify an appropriate location for a business in given circumstances

Recommend and justify an appropriate location for a business in given circumstances

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